President Trump has been battling the Global Trade War since shortly after he took office. Since then, it seems that China has continued to outplay and outsmart Trump in every move. Lately, Trumps goal is to ban TikTok and WeChat. This disagreement between Trump and China is all in an effort to get China to play by the global trading rules. To put things into perspective, since Trump took office, China's trade surplus with the US has grown by nearly 25%. On the other hand, China has barely increased imports from the US in the tit-for-tat tariff.
These are not the only concerns. The US is reported to be the worst country for coronavirus, where the economy shrank by 9.5% in the second quarter. This compares to China, whose economy reportedly grew in the second quarter. China's economy placed higher the second quarter of 2020 than of 2019. This has caused the Chinese currency to rise, while the dollar falls.
Do you believe a reelection in November will have any immediate effect on the US economy in comparison to China?
link: https://www.bloomberg.com/news/newsletters/2020-09-19/bloomberg-new-economy-china-is-winning-the-trade-war-with-trump
Yes, I do expect there to be large changes in the market following the election, as companies react to either 4 more years of similar policies as we have seen in terms of international trade with Trump, or a shift should it result in Biden victory. No matter what, there is likely to be large affects on the future US economy after this election.
ReplyDeleteI believe if Trump is reelected it will stay pretty much the same, as policies will likely remain as is. However, if Biden is elected, there will be a large shift. Not only in policy but in the view of the United States. Trump seems to have a very negative connotation to his name in terms of foreign policy and trade. While I'm not sure if Biden will be any better, it will be interesting to see how the view of the U.S. government changes.
ReplyDeleteChina's economy had deteriorated extremely at the starting stages of the pandemic due to decrease in exports and decrease in imports to balance the trade deficit as well. Most of the imports of the US are of China and that is also linked to the US economy. Trump like most other world leaders had decided to increase minimal contact with China's exports to increase safety of their citizens. We do not know how much Trump is in favor of regaining the original number of imports of US from China. But if Biden is elected, we will definitely see a new mindset regarding this matter. It will definitely be different and interesting to see what Biden has in store for us regarding relations with other countries and how it affects the US GDP due to change in imports and exports.
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